Your inquiry Topic: Financial Accounting Course number: 305: On January 1, 2020, ACC Larkspur Leasing Company announces an arrangement to contract assets to Cole Company. The agreement is described under the details provided.

1. The non-cancelable contract has only a 6-year commitment with out any extension provision. The equipment's life cycle is presumed to be 6 years.

2. The underlying asset value to a leaseholder is $291,000. The item's fair value on January 1, 2020 is $291,000.

3. Then at end of the lease term, the equipment shall regress to the owner, during which time it's also forecast to also have a residual value of $29,100, neither of which are guaranteed.

4. Starting on January 1, 2020, the order requires equal installments of annual payments with a 9% interest rate.

5. Larkspur's ability to obtain repayments is highly probable.

Create an amortization schedule for the leaseholder which is efficient for the lease agreement. (Round responses)

Answer rating: 100% (QA)

To create an efficient amortization schedule for the lease agreement between ACC Larkspur Leasing Co... View the full answer